Legend Power Systems (LPS) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 revenue rose to CAD 252,000 (USD 253,000), up 209% year-over-year, driven by increased system builds and demand.

• Gross margin improved to 44% from 15% year-over-year, reflecting cost reductions and product mix.

• Operating expenses dropped to CAD 631,000, down 39% year-over-year due to lower headcount and cost-cutting.

• Net loss narrowed to $522,000 from $1 million, and adjusted EBITDA loss improved to $465,000 from $801,000.

• Cash management remains a priority, with a $1.65 million financing completed after quarter end.

Financial highlights

• Revenue for Q1 2026 was CAD 252,000 (USD 253,000), up from CAD 81,000 (USD 82,000) in Q1 2025.

• Gross margin reached 44% in Q1 2026, up from 15% in Q1 2025 and 25% in Q4 2025.

• Equipment gross margin was 47%, and services gross margin was 80%.

• Operating expenses reduced to CAD 210,000 per month in Q1 2026 from CAD 347,000 per month prior year.

• Accounts receivable from backlog now exceeds CAD 300,000.

Outlook and guidance

• Expectation to achieve and exceed 50% gross margins during the year as cost reductions continue.

• Market opportunity for SmartGATE is strong, with growing demand in commercial real estate, education, government, and defense sectors.

• Pipeline of near-term opportunities exceeds 200 buildings, supported by a new building modeling tool.

• Anticipate good order flow despite delays from U.S. government policy changes.

• Growing pipeline and clear path to strong revenue growth over the next few years.